PROF. DR.

SAEED

C M IL DB O P E Y

KHAWAJA

AMJAD

PRINCIPAL

University of the Punjab 1-Cust Road, Opposite University Ground, Lahore-Pakistan. Tel: 0092 427248395, 7323633 Fax: 0092 42 7323087 Email: principal@puhcbf.edu.pk Websites: www.puhcbf.edu.pk

HAILEY COLLEGE OF BANKING & FINANCE

www.kamjadsaeed.edu.pk

MISIO S N

TTMN AE E T

TO PRODUCE LEADERSHIP OF FUTURE FOR

BANKS, INSURANCE,
AND RELATED

FINANCIAL INSTITUTIONS, INTERNATIONAL TRADE BUSINESS

SECTORS

By the grace of Allah, the University of the Punjab took an initiative of establishing Hailey College of Banking & Finance as the 5th constituent College of the University, Lahore. Lt. Gen. (R) Khalid Maqbool, Honorable Governor of Punjab and Chancellor, University of the Punjab inaugurated our College on March 26, 2003. Honorable Vice-Chancellor, Lt. Gen. (R) Arshad Mahmood had the vision to establish a quality College with specialized education in the area of banking, finance, insurance, international trade and related business sector. To translate his vision, the said College was established and the undersigned was appointed as Principal to operationalize the academic, research and related activities. The following three Programs are being currently offered in Banking & Finance, Insurance & Risk Management: 1. Four Years BBA Hons. (Morning) 2. Two Years MBA (Morning) 3. Two Years Executive MBA (Evening) By the grace of Allah, the market response to our above programs has achieved a glorious success. Thousands of applications were received and through transparent merit based criteria the best available students have been admitted and our academic programs started on October 22, 2003. We promise quality education. Lectures are backed-up with cases analysis, presentations, syndicate work and group discussions. To facilitate a quality transmission of knowledge and to help develop learning approach as opposed to teaching approach, relevant data are made available in the class rooms. To begin with, statistical analysis of some aspects relating to banking scene in Pakistan was published and distributed. The basic source of information for the Fourth Edition is the Statistics of Scheduled Bank in Pakistan and various other sources issued by the State Bank of Pakistan in December 2005. It is hoped that the faculty, students and other stakeholders will benefit from the enclosed statistical analysis. We stand to serve the society in general and students in particular with Pakistans orientation in respect of banking scene in our Country. Cooperation in computer composing by Mr. Muhammad Kashif Mukhtar and in getting it published by Mr. Dilawar Shaukat is placed on record.

PREFACE TO FOURTH EDITION

Lahore March 01, 2007

Prof. Dr. Khawaja Amjad Saeed Principal M.Com; LL.B. (Pb); MBA (Lebanon); Ph.D. (USA) Cost & Management Accountant (FCMA) Chartered Accountant (FCA)

PAKISTAN: LIST
Particulars A : Pakistani Banks

OF

SCHEDULED BANKS
June 30, 2003 Number 8 16 24 16 June 30, 2004 Number 7 21 28 17 December 03, 2005 Number 8 20 28 17

B :

1. Public Sector Banks (Nationalized, Specialized and Provincial) 2. Private Domestic Banks Privatized and Private Banks) Total Foreign Banks

Grand Total 40 45 45 Sources: Compiled from: Annual Report 2002-2003, State Bank of Pakistan, Selected Economic Indicators, Table 6.12, P.71. Annual Report 2003-2004, State Bank of Pakistan, Statistical Annexure List of Schedule Banks, Table 6.13, P. 74. Statistics of Scheduled Banks in Pakistan , December 2005, SBP: Statistics Department Table 2, P XIV, December 2005.

NUMBER
Particulars A Pakistani Banks Public Sector: Commercial Specialized Private Sector: Domestic B Foreign Banks

OF

SCHEDULED BANKS & BRANCHES

2005* Banks Number 28 7,234 8 2,097 4 1.562 4 535 20 5,137 17 114 45 7,348 2004* Banks Number 27 6,959 7 2,057 4 1,533 3 524 20 4,902 17 90 44 7,049

Total:

Source: Compiled from: Statistics on Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Table 2, P.XIV *December.

SELECTED BANKING SECTOR INDICATORS

Particulars Deposits Advances Investments in Securities & Shares Advanced to: Private Sector (Business) Personals 5 Weighted Average Deposits Rates: Interest bearing ** (%) PLS (%)** Lending rates (%) Source: Edited from: 4 1 2 3 4 Billion Rupees 2005* 2004* 2,614 2,202 1,935 1,254 727 615 1,404 303 1.43 2.71 10.17 1,136 204 1.04 1.36 6.99

Statistics of Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Karachi, Table 1, P. XIII *December, **Excluding zero rates.

PAKISTAN: SCHEDULED BANKS ADVANCE

YEAR RS. BILLION 2005 1,935* 2004 1,254 2003 975 2002 900 2001 873 2000 810 1999 727 1998 675 Sources: Compiled from: Annual Report 2003-2004, State Bank of Pakistan, Statistical Annexure Banking System, Table 6.1, P.56. *Statistics of Scheduled Banks In Pakistan, December 2005, SBP, Table 6, P. XVIII.

SCHEDULED BANKS ADVANCES: ANALYSIS

Types of Collateral 1 2 3 4 5 Merchandize Real Estate Fixed Assets, including machinery Securities, Shares & other Financial instruments Fixed Deposits and Insurance Policies

BY

COLLATERAL
December 2005 (Billion Rs.) 558 464 271 70 51 1,414 521 1,935 % 29 24 14 4 2 73 27 100

6 Others

Total: Source: Extracted from: Statistics on Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Karachi, Table 6, P. XVIII.

SCHEDULED BANKS ADVANCES

Types of Borrower 1 2 3 4 5 6 Private Sector (Business) Personal Non-Financial Public Sector Enterprises Government Non-Bank Financial Institutions Trust Funds & Non-Profit Organizations Others

BY

BORROWERS
December 2005 (Billion Rs.) 1,404 303 87 71 43 15 1,923 12 1,935 % 72 16 4 4 2 1 99 1 100

Total: Source: Computed from: Statistics on Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Karachi, Table 7, P. XIX.

SCHEDULED Particulars 1 Treasury Bills 2 Federal Government Bonds 3 Others

BANKS INVESTMENTS
December 2005 (Billion Rs.) 374 186 167 727

Total: Source: Computed from: Statistics on Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Karachi, Table 8, P. XIX.

PAKISTAN: SCHEDULED BANKS DEPOSITS YEAR RS. BILLION 2005 2,614* 2004 2,021 2003 1,693 2002 1,425 2001 1,283 2000 1,152 1999 1,122 1998 1,066 Sources: Compiled from: Annual Report 2003-2004, State Bank of Pakistan, Statistical Annexure Banking System, Table, 6.1. *Statistics of Scheduled Banks in Pakistan, December 2005, SBP: Statistics Department, Karachi. Table 4, P XVI. SCHEDULED BANKS DEPOSITS
Particulars A Pakistani Banks Domestic Private Public Sector B Foreign Banks Total Billion Rupees 2005* 2004* 2,368 1,974 1,879 1,516 489 458 246 228 2,614 2,202

Source: Compiled: Statistics of Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Karachi, Table 4, P. XVI. *December.

Pakistan: Capital MarketKSE Market Capitalization

YEAR February 24, 2007 January 19, 2007 2004 2003 2002 2001 RS. BILLION 3,158** 2,917* 1,357 746 408 339

2000 392 1999 286 Sources: Compiled from: Annual Report 2003-2004, State Bank of Pakistan, Statistical Annexure Capital Market, Table 7.2, P. 77. *Pakistan Market Indicators, Karachi: Pakistan & Gulf Economist, January 22-28, 2007, P. 39. All Shares Index Report (Sector Wise) Business Recorder, Karachi, February 24, 2007

PAKISTAN: IMPORTS

AND

EXPORTS

YEAR IMPORTS ($ B) EXPORTS ($ B) 2005-2006 28.58 16.45 2004-2005 20.60 14.39 2003-2004 15.59 12.31 2002-2003 12.22 11.16 2001-2002 10.34 9.14 2000-2001 10.73 9.20 1999-2000 10.31 8.57 1998-1999 9.43 7.78 1997-1998 10.12 8.63 Sources: Compiled from: Annual Report 2003-2004 Volume 1, Review of Economy, State Bank of Pakistan, Statistical Annexure Balance of Payments & Foreign Trade, Table 9.9, P. 96. For 2004-2005, & 2005-2006, Karachi: Pakistan & Gulf Economist, February 12-18, 2007, P. 18.

PAKISTAN: WORKERS REMITTANCES

YEAR RS. BILLION 2005-06 (July-April) 3.63* 2004-2005 4.17* 2003-2004 3.87 2002-2003 4.24 2001-2002 2.39 2000-2001 1.09 1999-2000 0.98 1998-1999 1.06 Sources: Compiled from: Annual Report 2003-2004, State Bank of Pakistan, Statistical AnnexureWorkers Remittances, Table 9.6, P. 93. *Pakistan Economic Survey 2005-2006, Statistical Appendix, Table, 8.8. P. 83.

ISLAMIC BANKING: PAKISTAN & GLOBAL SCENARIO

General Growth registered in the last 3 decades. 15% annual growth. 75 countries covered.

Parallel with conventional system o Malaysia o Bahrain o Some Gulf Islamic Banks & Financial Institutions Bahrain -26 Accounting & Auditing Organization for Islamic Financial Institutions, Bahrain Update: Till 2005 Following the issuance of guidelines vide BPD Circular No. 1, dated 1/1/2003 by the State Bank of Pakistan for permission to establish stand-alone branches for Islamic Banks, leading to the issuance of the first Islamic Banking Branch License to MCB in May, 2003, this branch started commercial business, while applications of other banks were later considered and some of them were granted license. Details updated till December 31, 2005 are given below:

ISLAMIC BANKING
START DECEMBER 31, 2005
11 Banks 70 branches Composition Number of Branches 37 Number of Banks

- Full-fledged Islamic Scheduled Banks

2 - Stand alone Islamic Branches of existing 33 9 Scheduled Banks Total 70 11 Source: Compiled from: Statistics on Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Karachi, Table 10, P. XXI.

ISLAMIC BANKS BRANCH NETWORK

Particulars A Full-Fledged Islamic Scheduled Banks: 1. Meezan Bank Ltd. 2. Al-Barka Islamic Bank BC B Stand-alone Islamic Branches of Existing Scheduled Banks: 1. Bank Alfalah 2. MCB Bank Limited 3. The Bank of Khyber 4. Standard Chartered Bank Ltd 5. Habib Bank AG Zurich 6. Bank Al-Habib 7. Habib Bank Limited 8. Metropolitan Bank Limited 9. Soneri Bank Limited Total Source: Computed from: 8 December 2005 (Number) 37 28 09 33 15 1 1 4 5 1 1 3 2 70 June 2005 (Number) 31 23 08 29 15 1 1 3 5 1 1 1 1 60

Statistics on Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Karachi, Table 9, P. XX.

ISLAMIC BANKS: DEPOSITS, FINANCING & INVESTMENTS

Particulars Pakistani Banks Dece June 2005 2005 Foreign Banks Dece. June 2005 2005 Total Dece. June 2005 2005

1 Deposits Accounts (Number) 98,487 68,962 28,649 26,828 127,136 95,790 Amount (Rs. b) 37 30 12 9 49 39 2 Financing (*) Accounts (Number) 13,526 9,989 2,435 1,134 15,961 11,123 Amount (Rs. b) 36 26 10 9 46 35 3 Investment (Book ValueRs.b) 1.7 1.6 104 589 1.81 2.2 Source: Edited from: Statistics on Scheduled Banks In Pakistan, December 2005, SBP, Statistics Department, Karachi, Table 10, P. XXI. (*) Includes advances and bills.

SOURCES
A: GOVERNMENT PUBLICATIONS 1. Annual Reports 2002-2003, 2003-2004, Karachi State Bank of Pakistan. 2. Statistics of Scheduled Banks In Pakistan, SBP, Statistics Department, December 2005. 3. Pakistan Economic Survey 2005-2006, Statistical Appendix. B: MAGAZINE Pakistan & Gulf Economist, Karachi January 22-28, 2007 and February 12-18, 2007. C: NEWSPAPER Business Recorder, Karachi, February 24, 2007.

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